Agencies aren't fully reimbursing IRS

Flickr user arsheffield

The Internal Revenue Service is not being reimbursed for work it provides to other government agencies, according to a report from the Treasury Inspector General for Tax Administration.

In the report, TIGTA said it has not been repaid nearly $28 million of the $90 million in work the IRS was commissioned to undertake with other government entities. 

“When the IRS is reimbursed less than the cost of performing reimbursable work, it must fund this work using its own operating budget,” the report stated.

In fiscal 2011, the IRS had undertaken 89 separate work agreements with federal agencies and state and foreign governments. The report found that the IRS was not using a consistent method to calculate the overhead costs of the reimbursable services. This meant the total amount to be repaid to the IRS may have been understated.

“We determined that the IRS is not always charging other entities for the full costs of the work performed on reimbursable agreements,” the auditors added.

According to the TIGTA report, the agency’s chief financial officer is responsible for “budgetary oversight and accountability for the IRS reimbursable program.” In a statement responding to the report, Pamela LaRue, the agency’s CFO, said the IRS would begin assessing all agreements starting fiscal 2013.

“It is unlikely our customers would agree to renegotiate agreements at a higher cost after the agreements have been signed,” LaRue wrote. 

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Going Agile:Revolutionizing Federal Digital Services Delivery

    Here’s one indication that times have changed: Harriet Tubman is going to be the next face of the twenty dollar bill. Another sign of change? The way in which the federal government arrived at that decision.

    Download
  • Cyber Risk Report: Cybercrime Trends from 2016

    In our first half 2016 cyber trends report, SurfWatch Labs threat intelligence analysts noted one key theme – the interconnected nature of cybercrime – and the second half of the year saw organizations continuing to struggle with that reality. The number of potential cyber threats, the pool of already compromised information, and the ease of finding increasingly sophisticated cybercriminal tools continued to snowball throughout the year.

    Download
  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

    Download
  • GBC Issue Brief: The Future of 9-1-1

    A Look Into the Next Generation of Emergency Services

    Download
  • GBC Survey Report: Securing the Perimeters

    A candid survey on cybersecurity in state and local governments

    Download
  • The New IP: Moving Government Agencies Toward the Network of The Future

    Federal IT managers are looking to modernize legacy network infrastructures that are taxed by growing demands from mobile devices, video, vast amounts of data, and more. This issue brief discusses the federal government network landscape, as well as market, financial force drivers for network modernization.

    Download
  • eBook: State & Local Cybersecurity

    CenturyLink is committed to helping state and local governments meet their cybersecurity challenges. Towards that end, CenturyLink commissioned a study from the Government Business Council that looked at the perceptions, attitudes and experiences of state and local leaders around the cybersecurity issue. The results were surprising in a number of ways. Learn more about their findings and the ways in which state and local governments can combat cybersecurity threats with this eBook.

    Download

When you download a report, your information may be shared with the underwriters of that document.